Gold Prices Steady as Bond Yields Retreat Ahead of Fed Rate Decision

Jon Banking, Economy, Fiscal Policies, Gold, Government, Market Commentary, Precious Metals

Gold prices held $10 per ounce above yesterday’s new 10-month low in London on Tuesday, trading at $1162 as bond prices ticked higher, nudging US Treasury yields down from fresh 18-month highs ahead of tomorrow’s Federal Reserve decision on interest rates.
New data late Monday showed the US federal deficit tripling in November from October’s shortfall between receipts and spending.
Fiscal year 2016 already showed a 34% jump from 2015, according to theNew York Times, with current plans – before Donald Trump’s tax-cutting and infrastructure promises – set to add an extra $8.6 trillion to Washington’s outstanding debts over the next decade on Congressional Budget Office forecasts.
A rebound in the Chinese Yuan today pushed Shanghai gold premiums to fresh 3-year highs at $32 per ounce above London quotes, after new figures said China’s retail sales and industrial output both rose faster than expected in November.

This post was published at FinancialSense on 12/13/2016.